Settlement offer from DCA

longtermplanner

Trajal wrote: »

Bear in mind you do not owe these guys anything.

Complete nonsense. legally you owe these guys exactly what you would have owed the original lender.

It is more likely that they will settle for a lower F&F, however don't confuse them making a sensible commercial decision to settle, with what your rights are and what legally you owe.

And if there isn't a CCJ at the moment, then they can apply for one and then it will be another 6 years before the debts falls off your credit history so settling now makes a lot of sense.

If you are paying them £110 a month at present then there is realistically no way they are going to settle for 25% - they would get that amount back in a couple of years.

I would suggest saying that a relative is prepared to lend you £6,000 so you can offer them that.

sourcrates

sh4un wrote: »

Hi All,
I have a Credit Card that I ran up to £15,000. I was entered into a payment plan of £110 a couple of years ago. This has now been sold to a DCA.

Should of asked this before, how old is the debt ?


when did you actually open the account ?

Monkeyballs

Hi Sh4un,

Absolutely agree with what everyone has said above!

When they call tell them that having looked at your finances and you're unable to afford the £9k without putting yourself into serious financial hardship...

You need to buy yourself a little more time so agree to them sending a paper copy of the F&F, file it but don't pay it

Then give it a few months, during this time they'll likely be in touch with a new offer or if not then go back to them (you can call but all agreements need to be in writing and no payment made until you have a hard copy on headed paper ) and offer maybe £3k an barter up from there...

The good news is that as you'd already happily pay £9k anything else off the top is a bonus!

Good luck.

MB

Trajal

longtermplanner wrote: »

Trajal wrote: »

Bear in mind you do not owe these guys anything.

Complete nonsense. legally you owe these guys exactly what you would have owed the original lender.

It is more likely that they will settle for a lower F&F, however don't confuse them making a sensible commercial decision to settle, with what your rights are and what legally you owe.

And if there isn't a CCJ at the moment, then they can apply for one and then it will be another 6 years before the debts falls off your credit history so settling now makes a lot of sense.

If you are paying them £110 a month at present then there is realistically no way they are going to settle for 25% - they would get that amount back in a couple of years.

I would suggest saying that a relative is prepared to lend you £6,000 so you can offer them that.

You think? The original amount owed was written off as bad debt by the company with whom the original agreement was made. They then sold the debt onwards to someone for just about nothing in the expectation that they can't be bothered to collect it all themselves and wanted the quick settlement from the DCA.

Morally nothing is owed, legally there is of course an obligation but that isn't to say that you shouldn't take advantage of the situation.

No one should run away from their legitimate debts, which is why I made the point that it would be different if the original lender had retained the debt. They did not, they chose to write off any balance remaining between what was owed and what the debt was sold for which is invariably quite a bit.

Offer low, do not feel bad for doing so. These DCAs are the spawn of Hades who make vulnerable people stressed and suicidal in pursuit of cash. The least profitable we can make them, the better.

sourcrates

Trajal wrote: »

Bear in mind you do not owe these guys anything.


You think? The original amount owed was written off as bad debt by the company with whom the original agreement was made. They then sold the debt onwards to someone for just about nothing in the expectation that they can't be bothered to collect it all themselves and wanted the quick settlement from the DCA.

Morally nothing is owed, legally there is of course an obligation but that isn't to say that you shouldn't take advantage of the situation.

No one should run away from their legitimate debts, which is why I made the point that it would be different if the original lender had retained the debt. They did not, they chose to write off any balance remaining between what was owed and what the debt was sold for which is invariably quite a bit.

Offer low, do not feel bad for doing so. These DCAs are the spawn of Hades who make vulnerable people stressed and suicidal in pursuit of cash. The least profitable we can make them, the better.

I have to say I agree, most people do not get into this position willingly, reasons for non payment are many and varied, but more often than not, its due to some life event, like a job loss, accident, marriage break up etc, lenders don't have brilliant track records in dealing with events like this, if a lender does there best to help out the debtor, then fair play, and I would do my best to repay them.


However, if all they do is cut there losses and sell it on to a DCA, then my mood changes completely, DCA`s lie, cheat, tell lies, intimidate, break the law, have I missed anything ?, basically they are not always nice people, and that automatically makes me want nothing to do with them.


Not all DCA`s do business in this way, but lots do, and that is the reason I would do anything I could to put obstacles in there way, and drag the process out so long, that they turn there attention elsewhere, and I would make no apology whatsoever for doing so either, if they treat me with respect, then I would return the compliment, just my opinion.

harveybobbles

I'd offer them £100 as F&F. nothing more. Nothing less.

All £9000 will do is earn them about £8950 clear profit from when they paid tuppence for the debt.

How long had you been paying this DCA £110 per month..?

sh4un

Thank you all so much for the time and information,advice you have given me.

The credit card was opened 2005 , i defaulted on payments in 2011 and set up the £110 a month in 2011. There is no CCJ on this debt.
The debt was sold to the DCA in December 2013.

My tasks are to

1. Only converse via letter.
2. Ask for the original credit agreement. What am I looking for when/if I receive it?
3. if the agreement is ok. I will go back with an offer off £3000 stating that the money is from my parents.
4. Haggle hard to pay the least amount
5. Ensure that the letter states "Full and Final payment
6. and will be on my credit file as "FULLY SATISFIED"

Am i missing anything.
Thanks again for you help

sourcrates

sh4un wrote: »

Ask for the original credit agreement. What am I looking for when/if I receive it?

Hi,


If its from 2005, there is a good chance they will not have the paperwork, as banks usually only keep info for 6 years, although there are exceptions, make the CCA request, don't forget to include the £1 statutory payment either by cheque or postal order, see that they come back to you with, then post back for advice.


Making this request will automatically put the account "into dispute" and there will be no more collection activity until the request has been fulfilled, however long that may be, if they cant find it, it cant be enforced.

harveybobbles

sh4un wrote: »

if the agreement is ok. i will go back with an offer £3000 stating that the money is from my parents.

** please_do_not_do_this **

harveybobbles

CCA them instantly! 99% chance they wont have the paperwork and you have been giving them £110 each month for nothing.

NOW they are being greedy and chancing their arm to get £9000 out of you.

I'd stop paying NOW and CCA them. Sit back and wait to see if they bother replying (they will probably say they are passing the account back to the OC or they will pass it to another DCA)